PhilRatings: CREIT well-positioned for RE growth, affirms strong rating
By James A. Loyola – Feb 11, 2025 10:04 AM
from Manila Bulletin
Saavedra-led Citicore Energy REIT Corporation (CREIT), the country’s first renewable energy (RE) real estate investment trust, has been assigned a strong Issuer Credit Rating of PRS Aa plus (corp.), with a Stable Outlook by Philippine Rating Services Corporation.
An Issuer Credit Rating is an opinion on the overall creditworthiness of a company, evaluating its ability to meet all its financial obligations within a time horizon of one year.
A company rated PRS Aa (corp.) differs from the highest rated corporates only to a small degree and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates. The “plus” further qualifies the assigned rating.
On the other hand, a Stable Outlook means that the rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings has also maintained its Issue Credit Rating of PRS Aa plus, with a Stable Outlook, for CREIT’s outstanding Association of Southeast Asian Nations (ASEAN) Green Bonds amounting to ₱4.5 billion.
Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.
PhilRatings said the assigned credit ratings and corresponding outlook took into account that CREIT is well-positioned to benefit from the country’s growing renewable energy needs with its unique and fully occupied portfolio of green assets.
Also considered are the company’s reputable shareholders, its strong profitability with high margins, and its sound financial position and more than satisfactory liquidity.
“Sustaining the PRS Aa+ credit rating from PhilRatings, for both the company as an issuer and the company’s maiden ASEAN Green Bond, is a testament to the company’s strong financial position and profitability as the foremost Energy REIT in the Philippines, delivering superior yields from its green asset portfolio,” said CREIT President and CEO Oliver Tan.
He added that, “We intend to continue as a platform that empowers investments, ensuring that our debt instruments are trusted by creditors and investors.”
Proceeds from CREIT’s oversubscribed outstanding ASEAN Green Bonds amounting to ₱4.5 billion were used to acquire value-accretive properties to grow the company’s green asset portfolio to its current 7.1 million square meters – cementing its status as the country’s largest renewable energy landlord.
Tan noted that, the continued issuance of strong ratings reflects the agency’s confidence in CREIT’s unique business model.
A 100 percent occupancy leased out to solar operators and developers and operating in a crisis-proof industry has allowed CREIT to consistently declare above-prescribed dividends since its listing in the stock market in February 2022.
CREIT’s current land parcels form part of the expansion pipeline of its sponsor, Citicore Renewable Energy Corporation, with its five gigawatts (GW) in five years goal in full speed.
Moving forward, CREIT anticipates sustained growth in its earnings and for its liquidity to remain more than satisfactory.
